Bitcoin rebound? Here are the key levels to watch

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According to the latest predictions from cryptocurrency analyst Ali Martinez, Bitcoin may be on the verge of a rebound. However, the leading cryptocurrency is currently in an important price range that is crucial to the bullish or bearish outcome of the market. Bitcoin must stay above $93,400 to maintain its bullish momentum.

In an X video released on December 28, Martinez mentioned that certain market indicators show that Bitcoin is expected to usher in a price recovery. He pointed out that Bitcoin has formed a bullish divergence with its relative strength index (RSI), which is usually a classic bullish signal that downward pressure is fading and a price reversal may be imminent.

In addition, $95,300 is a key price level with about $14 million in potential liquidations in the market. Martinez believes that market makers may pay attention to this price range because a large part of leveraged trading positions are concentrated in this range. Market makers typically try to eliminate these leveraged positions, thereby increasing market liquidity and volatility, and they may also use these positions to trade at more favorable prices.

Another signal supporting Bitcoin's rebound is that the proportion of long traders on the Binance exchange increased from 53.12% to 64.04%. This means that more and more Binance traders predict that Bitcoin prices will rise, and Martinez believes that these traders have a good historical performance.

Since Martinez posted the video, Bitcoin has broken through $94,800, which is considered a key resistance level for the rebound. Currently, Bitcoin is expected to continue to rise, with a target price of $95,600 and even $98,373 in the short term.

However, market experts remind that Bitcoin is at a critical moment. A break below the $93,400 support level could lead to a further drop in price, with a target of $84,000 or even a lower $70,000. This means that the price of Bitcoin could fall 25% from current levels.

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